General Dynamics' acquisition of Gulfstream: A landmark event in aviation history

Gulfstream's history began in the 1950s when Grumman developed the Gulfstream I aircraft. In subsequent decades, new models like the Gulfstream II and III were introduced. The company's name changed several times, eventually becoming Gulfstream Aerospace Corporation after going public.

In 1985, Chrysler acquired Gulfstream before selling it back to Allen Paulson and Forstmann Little four years later. By then, the company had begun developing ultra-long-range jets like the Gulfstream V.

On May 18th, 1999, General Dynamics announced its acquisition of Gulfstream Aerospace for $5.3 billion. This move brought General Dynamics back into aircraft manufacturing after previously owning Cessna Aircraft.

The merger involved a stock swap that gave Gulfstream shareholders shares in General Dynamics. Although initial market reactions were mixed—with shares dropping by about 10%—General Dynamics CEO Nicholas Chabraja expressed confidence: "Gulfstream is well within our core competencies and one of the strategic areas where I said we would move."

Since joining forces with General Dynamics, Gulfstream has solidified its position as a leading private jet manufacturer. In the decade following the merger, General Dynamics stock appreciated over 120%, partly due to Gulfstream's success.